Slide 1: Resimac Group Ltd FY21 Investor Presentation
FY For personal use only 21 Resimac Group Ltd FY21 Investor Presentation
Slide 2: Our business highlights
Our business highlights For personal use only DIREC T VIA BROKERS & LEADING AUSTRALIAN LEADING NZ TO CUSTOMER DIREC T TO CUSTOMER NON-BANK LENDE R VIA BROKERS NON-BANK LENDER VIA BROKERS & WHOLE SALE PARTNERS New brand launched in September Completed 100% acquisition of IA & DIREC T TO CUSTOMER
Slide 3: Performance highlights
For personal use only Performance highlights. SCOTT MCWILLIAM, CEO JASON AZZOPARDI, CFO
Slide 4: FY21 key highlights (vs FY20)
FY21 key highlights (vs FY20) For personal use only STATUTORY1 NORMALISED2 NET INTEREST COST TO INCOME NPAT NPAT INCOME RATIO (NORMALISED) $107.6m $104.0m $242.7m 32.1% 92% 87% 29% 580bps HOME LOAN RETURN ON FY21 DIVIDEND EARNINGS PER AUM EQUITY (ROE) FULLY FRANKED SHARE $13.8b 36.9% 6.4c 26
Slide 5: Financial results summary
Financial results summary For personal use only 87% Increase in 580bps Decrease in Normalised NPAT Cost to FY21 FY20 CHANGE Income Ratio (Driven by higher Asset Under Management (Driven by revenue growth partly FINANCIAL PERFORMANCE and Net Interest Margin) offset by investment in core banking trans
Slide 6: Profitable growth
Profitable growth For personal use only NET PROFIT AFTER TAX (NORMALISED) ($m) COST TO INCOME RATIO (NORMALISED) 120 70% 100 60% 104.0 61.7% % R 58 56.6% 80 1 50% C AG 60 4 YEAR 40% 55.6 30% 37.9% 40 32.1% 20% 20 26.2 31.1 10% - - FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 NET INTEREST INCOME ($m) 300
Slide 7: Settlements
Settlements For personal use only Breadth of Resimac home loan products in all segments and channels continues to drive settlement growth. 2H21 settlements increased 25% driven by Prime +35% and Specialist +4%, providing strong momentum into FY22. FY21 settlements increased 3% compared to FY20
Slide 8: Assets under management
Assets under management For personal use only Home loan assets under management increased 11% (2.2x system growth1). New Zealand increased 35% to $0.7b as Resimac continues to build a leading New Zealand non-bank. irect to consumer channel increased 10% to $1.9b driven by homeloans.com.au growth p
Slide 9: Home loan margins
Home loan margins For personal use only GROUP NET INTEREST MARGIN (bps) 67 207 190 Home loan pricing FY21 Funding costs decreased increased 46bps 4bps (46) (4) (Driven by higher yield back (Driven by higher warehouse book run-off and competitive costs during height of COVID) pricing for new business
Slide 10: Funding
Funding For personal use only The Group issued $5.8b of Australian and NZ Prime and Specialist RMBS in FY21. RMBS pricing decreased materially in 2H21. Benefits of lower funding costs will flow into FY22 and beyond as higher cost RMBS term out. AUSTRALIA RMBS ISSUANCE TERM PROFILE ($b) AUSTRALIA
Slide 11: Home loan portfolio composition
Home loan portfolio composition For personal use only WEIGHTED AVERAGE WEIGHTED AVERAGE PORTFOLIO LVR PORTFOLIO DYNAMIC LVR* Prime Specialist Prime Specialist 66.4% 69.0% 64.9% 68.8% *Dynamic LVR = LVR based on latest CoreLogic individual property valuations. LOAN PURPOSE LOAN TYPE GEOGRAPHIC LOCATI
Slide 12: Home loan portfolio performance
Home loan portfolio performance For personal use only ARREARS (%) 2.25% 1.96% 1.56% 1.56% 1.50% 1.78% 1.60% Arrears Remain well below SPIN index and broadly in line with pre-COVID arrears levels 0.76% 0.79% 0.75% 0.72% 0.69% 0.68% 0.68% 0.83% 0.65% 0.70% 0.60% 0.57% 0.53% 0.44% 0.07% 0.06% 0.07% 0.0
Slide 13: Home loan portfolio performance: provisions
Home loan portfolio JUN 2019 JUN 2020 DEC 2020 JUN 2021 performance HOME LOAN SPECIFIC PROVISIONS $m For personal use only Prime 0.35 0.61 0.57 0.39 Specialist 3.26 3.37 3.61 3.02 Legacy 1.50 1.93 1.86 1.80 Other (incl. NZ) 0.47 0.15 0.03 0.22 Total specific provisions 5.58 6.06 6.07 5.43 Lower Spec
Slide 14: Hardship analysis
Hardship analysis For personal use only COVID-19 customer impacts managed well with the number of customers in hardship decreasing materially since June 2020. ACTIVE PAYMENT DEFERRALS AT 30 JUNE 20201 ACTIVE PAYMENT DEFERRALS AT 31 JULY 20211 35,000 40,000 2.50% 33,200 25% 22% 35,189 30,000 35,000
Slide 15: Strategic priorities
For personal use only Strategic priorities. SCOTT MCWILLIAM, CEO
Slide 16: Growth strategy
Growth strategy For personal use only Leading non-bank lender by market share Highly rated and awarded online lender Leading commercial and consumer asset across major aggregator groups in Australia financier in Australia and New Zealand Low cost origination model, encompassing and New Zeala
Slide 17: Digital strategy
Digital strategy For personal use only Resimac continues to understand the advantages of upgrading our technology platform and thereby embrace the benefits of investment in technology. We expect our investment in digital transformation will deliver a contemporary digital customer experience and plat
Slide 18: Financial results
For personal use only results. Financial
Slide 19: Consolidated statement of profit or loss
FY21 FY20 CONSOLIDATED STATEMENT OF PROFIT OR LOSS ($m) FOR THE YEAR ENDED 30 JUNE 2021 Interest income 467.6 459.3 For personal use only Interest expense (224.9) (270.7) Net interest income 242.7 188.6 Fee and commission income 9.9 11.3 Fee and commission expense (35.2) (36.1) Other income 8.0 0.7
Slide 20: Consolidated statement of financial position
30-JUN-21 30-JUN-20 Cash reconciliation ($m) 30-JUN-21 30-JUN-20 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ($m) AS AT 30 JUNE 2021 Cash and bank balances 619.8 366.0 Cash at bank and on hand 50.6 27.8 Trade and other receivables 4.6 6.0 Cash collections account 567.7 336.7 Loans and advances to c
Slide 21: Consolidated statement of cash flows
FY21 FY20 CONSOLIDATED STATEMENT OF CASH FLOWS ($m) FOR THE YEAR ENDED 30 JUNE 2021 Interest received 478.2 471.0 OPERATING ACTIVITIES Interest paid (211.9) (264.0) For personal use only Receipts from loan fees and other income 49.8 46.7 Payments to suppliers and employees (167.7) (155.0) Payments o
Slide 22: Scott McWilliam, Chief Executive Officer
Scott For personal use only McWilliam CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER Scott is responsible for managing the overall operations of the organisation, its people and resources and ensures the implementation of the strategy agreed with the Board. Scott has over 20 years’ experience in th
Slide 23: Jason Azzopardi, Chief Financial Officer
Jason For personal use only Azzopardi CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER Jason joined the Resimac Group in July 2018 as Chief Financial Officer. Jason is also the Group Executive leading the Marketing function. Prior to Resimac, Jason held senior finance roles in private equity in Londo
Slide 24: Environmental, social and governance
Environmental, social and governance For personal use only As an Australian ASX Listed entity providing funding for a large number of Australian and New Zealand communities, Resimac is able to contribute to create a positive social impact. Resimac acknowledges that its approach to environmental, soc
Slide 25: About our business units
About our business units For personal use only Resimac has expanded its operations both in Australia and New Zealand by completing acquisitions and making investments into complementary businesses. These acquisitions and investments provide for a broader and more diversified distribution model which
Slide 26: Our values; important notice and disclaimer
Our values For personal use only INTEGRITY & QUALITY PASSION RESPECT AGILITY PROFESSIONALISM ACCOUNTABILITY IMPORTANT NOTICE & DISCLAIMER The information in this presentation provides an overview of the results for the period ended 30 June 2021. It is general background information about the activit
Slide 27: Thank you
For personal use only Thank you.